Bharat Forge Wins ₹1,662 Crore Deal for 2.5 Lakh Army Carbines

Introduction

Bharat Forge Limited (BFL), a leading Indian multinational, has secured a substantial contract worth ₹1,661.9 crores from the Ministry of Defence. The agreement involves the supply of 255,128 units of indigenously designed Close Quarter Battle (CQB) Carbines to the Indian Army. This deal, signed on December 30, 2025, represents a significant milestone for India's 'Atmanirbhar Bharat' initiative in the defence sector, reinforcing the country's push towards self-reliance in manufacturing critical military hardware.

Details of the Landmark Contract

The contract specifies that Bharat Forge will execute the order over a five-year period. This long-term engagement ensures a steady production line and supply chain for the armed forces. The deal underscores the growing trust of the Ministry of Defence in the capabilities of the Indian private sector to deliver advanced weaponry. The procurement is a crucial part of the Indian Army's infantry modernization plan, aimed at replacing older, legacy small arms with state-of-the-art equipment suitable for contemporary warfare scenarios.

The Indigenously Developed CQB Carbine

The 5.56 x 45 mm CQB Carbine is a product of a collaborative effort between the Defence Research and Development Organisation's (DRDO) Armament Research & Development Establishment (ARDE) in Pune and Bharat Forge. This partnership highlights a successful synergy between a government research agency and a private manufacturing powerhouse. The carbine is specifically designed for effectiveness in close-quarter combat, such as urban warfare and counter-insurgency operations, where a compact and maneuverable weapon is essential. According to DRDO, the firearm weighs approximately 3.3 kilograms, has an effective range of 200 meters, and is compatible with both NATO-standard and Indian-made INSAS ammunition, offering significant logistical flexibility.

A Boost for 'Made in India' Defence

This contract is a clear victory for the 'Made in India' campaign. By sourcing a large quantity of critical infantry weapons from a domestic company, the government is reducing its reliance on foreign imports and fostering a robust local defence ecosystem. Bharat Forge, along with its wholly-owned defence subsidiary, Kalyani Strategic Systems Limited (KSSL), has been a vocal proponent of this initiative. The company stated in a regulatory filing that it remains dedicated to equipping the Indian Armed Forces with advanced, locally manufactured defence platforms. The project is also expected to create opportunities for numerous Micro, Small, and Medium Enterprises (MSMEs) that form the supply chain for components and raw materials.

Financial Performance and Market Response

Bharat Forge has demonstrated strong financial health, which provides a solid foundation for executing large-scale projects. For the quarter ending September 30, 2025, the company reported a 23% year-on-year increase in its consolidated net profit, reaching ₹299 crore. Its revenue from operations grew by 9.3% to ₹4,032 crore during the same period.

Following the announcement, the market has shown a positive, albeit measured, response. On the day of the report, Bharat Forge's shares closed at ₹1,456.60 apiece on the NSE, marking a 0.75% rise. The stock has shown resilience, gaining over 11% in the last six months and touching a one-year high of ₹1,470.60 on December 24, 2025.

Broader Context of Infantry Modernization

This carbine deal is part of a wider, comprehensive modernization program for the Indian Army's infantry units. The army has been working for years to replace its vintage 9mm sub-machine guns, which are based on a decades-old design. The new CQB carbines offer superior metallurgy, a higher rate of fire, and improved accuracy, providing soldiers with a decisive advantage in close-range engagements. This procurement follows other key acquisitions, including new assault rifles and anti-tank systems, all aimed at creating a more agile, lethal, and technologically advanced infantry force.

Analysis and Future Outlook

The contract solidifies Bharat Forge's position as a premier defence manufacturer in India. While the company has a strong presence in the automotive and industrial sectors, this deal significantly enhances its defence portfolio and revenue visibility for the next five years. For India's defence sector, it marks a crucial step towards achieving self-sufficiency in small arms, a segment historically dominated by foreign suppliers. The successful development and production of the CQB carbine demonstrate the growing maturity of India's domestic design and manufacturing capabilities.

Conclusion

Bharat Forge's ₹1,661.9 crore contract to supply the Indian Army with over 255,000 CQB carbines is a landmark achievement for both the company and the nation's defence indigenization goals. The five-year execution timeline provides a clear roadmap for this critical project. As deliveries commence, this 'Made in India' weapon will significantly enhance the operational effectiveness of frontline soldiers, marking a new chapter in the modernization of the Indian infantry.